Who pays what at a Illinois closing

Illinois residential real estate transactions follow established customs for allocating settlement expenses between parties. By custom in the Chicago area, both you and the seller retain separate real estate attorneys. Each attorney reviews and modifies the contract, clears title, and attends the final closing. Closings take place at a title company office, where the title company acts as escrow and settlement agent. Both attorneys attend or sign documents in advance, and the title company disburses funds on the day of closing.

Transfer taxes in Naperville involve state, county, and municipal authorities with distinct payment rules. The seller customarily pays the Illinois state transfer tax of $0.50 for each $500 of value, which equals $1.00 per $1,000. The seller also pays the county transfer tax of $0.25 for each $500 of value, or $0.50 per $1,000. Collar counties including DuPage County and Will County levy this county charge. In addition, Naperville charges a municipal transfer tax of $3.00 per $1,000 of value, which you pay as the buyer.

Title insurance policies and property survey requirements are divided according to standard regional practices. By custom, the seller pays for the owner title insurance policy, the title search, and the seller closing fee. For a detached home, the seller customarily provides a current plat of survey before closing, whereas condominium units are exempt from this requirement. On the buyer side, you pay for the lender title insurance policy, the buyer closing fee, and the title company escrow fees.

Lender and prepaid costs

When you secure a mortgage for a home in Naperville, your lender requires several upfront service fees. These charges include the loan origination fee, an appraisal fee to establish property value, and a credit report fee. You also pay prepaid interest at closing to cover the daily loan interest from your settlement date through month end. In addition, lenders establish an escrow reserve account to hold advance funds for homeowners insurance and property taxes.

Illinois property tax billing directly shapes how your lender calculates escrow reserves at the closing table. Property taxes in Illinois are billed a year in arrears and are paid in two installments. For the collar counties, tax billing occurs around June 1 and September 1. Your lender requires initial escrow deposits so sufficient funds exist when these county bills come due.

To balance these upcoming tax obligations, the purchase contract provides an offset from the seller at closing. The seller credits you for taxes accrued but not yet billed during their ownership period. Contract terms customarily set this credit at 100.0 to 110.0 percent of the most recent full-year bill. You apply this credit toward your required escrow reserves and prepaid closing costs. With a Naperville median sold price of $512,000 in August 2026, coordinating these prepaid items ensures accurate cash planning.

Property tax proration in Illinois

In Illinois, property taxes are paid a year in arrears across two installments. Cook County bills its first installment around March 1 for 55.0% of the prior year total. That county issues the second installment later in the year. The collar counties bill their installments around June 1 and September 1.

Because of this lag, the seller owes taxes for the time they owned the home before closing. At closing, the seller credits you for the property taxes accrued but not yet billed. This credit appears on your settlement statement to reduce the funds you owe at closing. In the sales contract, this proration is customarily set at 100.0% to 110.0% of the most recent full-year bill. You will use these funds to pay future tax bills when they arrive.

After closing, an owner-occupied principal residence qualifies for the General Homestead Exemption. You apply for this exemption through the county assessor after the transaction closes. The exemption reduces the equalized assessed value by $8,000 in collar counties, including DuPage, Kane, Lake, McHenry, and Will. It provides a $10,000 reduction in Cook County and $6,000 in the rest of the state. Cook County renews the exemption automatically once granted.

A worked example at the {market} median

The city recorded an estimated median sold price of $512,000 for August 2026. If you buy a home at this estimated price, you pay the local Naperville municipal transfer tax. Naperville charges an estimated municipal rate of $3.00 per $1,000 of value directly to the buyer. To calculate your cost, divide the estimated $512,000 purchase price by an estimated 1,000. This standard arithmetic produces an estimated count of 512 taxable increments of value. Multiplying those estimated 512 increments by the estimated $3.00 rate yields an estimated buyer transfer tax of $1,536. You can plan for this estimated municipal cost of $1,536 on your final closing statement.

By custom, the home seller covers both the state and county real estate transfer taxes. The state transfer tax requires an estimated $0.50 for each estimated $500 of value, which equals an estimated $1.00 per estimated $1,000. On this estimated $512,000 sale, that state rate results in an estimated seller charge of $512. Collar counties like DuPage and Will levy an estimated county tax of $0.25 per estimated $500 of value. That county rate equals an estimated $0.50 per estimated $1,000, creating an estimated seller expense of $256. Together, these two customary seller taxes generate an estimated closing cost of $768 for the seller. Your sole direct transfer tax payment as the buyer remains the estimated municipal charge of $1,536.

Ways to lower what you bring to closing

You can request seller credits during purchase negotiations to reduce the cash you need on settlement day. In August 2026, the list-to-sale ratio in Naperville was 97.6 percent, showing room for negotiation on some contracts. Lenders can also provide closing credits in exchange for accepting a higher ongoing mortgage interest rate. Additionally, shopping between title companies and comparing individual lender fees allows you to trim specific closing line items.

State programs from the Illinois Housing Development Authority present several ways to fund down payments and closing fees. The IHDAccess Forgivable option offers assistance forgiven over ten years when paired with an agency first mortgage, provided you meet income limits. The IHDAccess Deferred program provides interest-free funds that become due only when you sell or refinance the property. If you prefer structured payback, IHDAccess Repayable spreads zero-interest payments monthly across a ten-year term. The IHDAccess Home program delivers closing help through a zero-interest second mortgage that remains deferred until a future sale or refinance.

Sources: Aurora Code of Ordinances, Real Estate Transfer Tax; Chicago Municipal Code 3-33-030; Chicago-area practice; Cook County Treasurer; Multi-Board Residential Real Estate Contract 8.0, Prorations paragraph; Counties Code, 55 ILCS 5/5-1031; Cook County Code §74-100 et seq.; Evanston City Code 3-5, Real Estate Transfer Tax; IHDA and City of Chicago program pages as listed; eligibility and amounts change — the guide names programs and links, never amounts; Illinois State Bar Association; Chicago-area practice; Multi-Board Residential Real Estate Contract 8.0, Survey paragraph; Multi-Board Residential Real Estate Contract 8.0, Title paragraph; Chicago-area practice; Municipal ordinances as listed; Naperville Municipal Code, Real Estate Transfer Tax; Oak Park Village Code 23A-1-2, Real Estate Transfer Tax; Property Tax Code, 35 ILCS 200/15-175; Cook County Assessor; Real Estate Transfer Tax Law, 35 ILCS 200/31-10.

Written from public sources and the closings recorded on this site; last revised September 21, 2026.